HomeMy WebLinkAbout092721cabs01 JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
COUNTY ADMINISTRATOR BRIEFING AGENDA REQUEST
TO: Board of County Commissioners
FROM: Mark McCauley, Interim County Administrator
DATE: September 27,2021
SUBJECT: Presentation to the Board of County Commissioners Regarding a
Request by the Fort Worden Public Development Authority (PDA) for
a Loan Guarantee of$375,000 Enabling the PDA to Obtain a Line of
Credit Which is a Vital Component of The Fort Worden
Revitalization Plan
STATEMENT OF ISSUE: The PDA has recently been confronted with a number of existential threats.
One was extensive financial mismanagement where capital funds were used to cover operating costs. The
second was the Covid-19 pandemic which all but eliminated economic activity at Fort Worden.
The PDA has a new board and a new executive director who are keenly focused on keeping the PDA viable
while they improve fiscal controls, operating procedures, and financing arrangements, while at the same
time improving/renovating/modernizing their capital facilities.
David Timmons, PDA Executive Director, approached the County to see whether the County would
consider assisting this revitalization effort by guaranteeing a line of credit necessary to complete the last leg
of the PDA's complex new financing arrangements. Mr. Timmons met with Commission Chair Dean,
Treasurer Stacie Prada, and Interim County Administrator McCauley on Friday, September 24 to provide
background on the PDA's difficulties and the plan for revitalizing the PDA. In preparation for this meeting
Mr. Timmons provided a substantial set of financial documents supporting his request.
Chair Dean, Treasurer Prada and Interim County Administrator McCauley were impressed with the
presentation by Mr. Timmons and believe the request for a line of credit guarantee represents a great
opportunity for the County to support a significant driver of the local economy and is worthy of serious
consideration by the County.
ANALYSIS: The amount of the requested line of credit guarantee is $375,000. The County could either
deposit the funds immediately into an escrow account or commit to providing the funds at a later date. In
either case the PDA would commit to repaying the County however much of the $375,000 would be used to
meet the PDA's need to service the line of credit. There is risk associated with this request, however we
believe the PDA's plan is solid and enjoys a high probability of success, such that our guarantee will likely
not be invoked.
FISCAL IMPACT: Funds deposited in escrow or committed would remain the County's. A fiscal impact
would be felt if the line of credit was invoked and the PDA subsequently defaulted on its obligations.
RECOMMENDATION: That the Board of County Commissioners listen to Mr. Timmons' presentation
and then authorize the Treasurer and Interim County Administrator to further study the request and in
conjunction with the Mr. Hunsucker,the County's Chief Civil Deputy Prosecuting Attorney, bring a formal
action to the Board of Commissioners for potential action.
REVIEWED BY:
Mark McC ey, Interim County inistrator a